What happens if you file LLC taxes late?

Late Filing and Late Payment Penalties If your LLC does not owe any taxes, there will be no fee for filing late no matter what filing status you choose. For those companies that do owe taxes, the failure-to-file penalty is 5\% of the unpaid taxes for each month or part of a month that a tax return is late.

What happens if a business files taxes late?

The penalty for filing late is 5\% of the taxes you owe per month for the first five months – up to 25\% of your tax bill. The IRS will also charge you interest until you pay off the balance.

How far back can the IRS penalize you?

The IRS can go back to any unfiled year and assess a tax deficiency, along with penalties. However, in practice, the IRS rarely goes past the past six years for non-filing enforcement. Also, most delinquent return and SFR enforcement actions are completed within 3 years after the due date of the return.

How does the IRS calculate late filing penalties?

Failure-to-file penalty is charged on returns filed after the due date or extended due date, absent a reasonable cause for filing late. The failure-to-file penalty is 5\% of the unpaid taxes for each month or part of a month that a tax return is late. The penalty won’t exceed 25\% of your unpaid taxes.

What is the deadline for an LLC to file taxes?

April 15
Update: 2021 Income Tax Filing Deadline Moved to May 17 This year, individual taxpayers, including sole proprietors and single-owner LLCs, who normally have to file their tax return by April 15 will have until May 17, 2021 to file their 2020 taxes.

What happens if you file your taxes late but don’t owe anything?

There is no penalty for filing a late return after the tax deadline if a refund is due. If you didn’t file and owe tax, file a return as soon as you can and pay as much as possible to reduce penalties and interest.

When were business taxes due 2020?

April 15, 2020
April 15, 2020 This is the due date for corporate tax returns, using Form 1120.